None 5. Find the swap rate of 1.5-year plain vanilla swap 3 months after initiation with the followingcharacteristics: N = $100, semi-annual payments, and price is $0.4044. The floating leg isreferenced to the 6-month LIBOR, which was at 5% 3 months ago.TZ(O,T)0.250.98400.50.97300.750.965010.94401.250.93901.50.9340a. 4.9%b. 4.7%c. 4.8%d. 5.1%e. 5.0%

Given that the present value of the fixed leg is $0.4044, we can set up the equation:0.4044 = (0.5 *…

Answered: 5. Find the swap rate of 1.5-year plain…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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